Hi,

    Nevermind - I found the problem. I modified my stylesheet thus :

<?xml version="1.0" encoding="UTF-8"?>
<xsl:stylesheet
	xmlns:xsl="http://www.w3.org/1999/XSL/Transform"
	xmlns:exsl-common="http://exslt.org/common"
	version="1.0">

	<xsl:variable name="rtf" xml:space="preserve">
		<a>
			<b />
		</a>
	</xsl:variable>

	<xsl:template match="/">
		<xsl:apply-templates select="exsl-common:node-set($rtf)" mode="t" />
	</xsl:template>

	<xsl:template match="@*|node()" mode="t">
		<xsl:copy>
			<xsl:apply-templates select="@*|node()" mode="t" />
		</xsl:copy>
	</xsl:template>

</xsl:stylesheet>

     And now, the stylesheet functions, but xml:space="preserve"
doesnt get respected. What could be the problem here?

Thanks,
Kenneth